Correlation Between American Hotel and Primaris Retail
Can any of the company-specific risk be diversified away by investing in both American Hotel and Primaris Retail at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining American Hotel and Primaris Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Hotel Income and Primaris Retail RE, you can compare the effects of market volatilities on American Hotel and Primaris Retail and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in American Hotel with a short position of Primaris Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Hotel and Primaris Retail.
Diversification Opportunities for American Hotel and Primaris Retail
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between American and Primaris is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding American Hotel Income and Primaris Retail RE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primaris Retail RE and American Hotel is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on American Hotel Income are associated (or correlated) with Primaris Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primaris Retail RE has no effect on the direction of American Hotel i.e., American Hotel and Primaris Retail go up and down completely randomly.
Pair Corralation between American Hotel and Primaris Retail
Assuming the 90 days trading horizon American Hotel Income is expected to under-perform the Primaris Retail. In addition to that, American Hotel is 3.33 times more volatile than Primaris Retail RE. It trades about -0.35 of its total potential returns per unit of risk. Primaris Retail RE is currently generating about 0.19 per unit of volatility. If you would invest 1,562 in Primaris Retail RE on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Primaris Retail RE or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Hotel Income vs. Primaris Retail RE
Performance |
| Timeline |
| American Hotel Income |
| Primaris Retail RE |
American Hotel and Primaris Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Hotel and Primaris Retail
The main advantage of trading using opposite American Hotel and Primaris Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Hotel position performs unexpectedly, Primaris Retail can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Primaris Retail will offset losses from the drop in Primaris Retail's long position.| American Hotel vs. Algonquin Power Utilities | American Hotel vs. Electra Battery Materials | American Hotel vs. Brookfield Office Properties | American Hotel vs. HOME DEPOT CDR |
| Primaris Retail vs. Slate Office REIT | Primaris Retail vs. Automotive Properties Real | Primaris Retail vs. BTB Real Estate | Primaris Retail vs. CT Real Estate |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |